By: Aaron Eller

February 13, 2025

St. Louis, MO Real Estate Market: 2024 Recap, 2025 Outlook, and What to Expect

The St. Louis real estate market has seen shifts over the past few years, influenced by economic conditions, interest rates, and buyer and seller behavior. As we move into 2025, it’s crucial to understand current trends, where the market is headed, and how both buyers and sellers can navigate the evolving landscape.

Current Market Data: Sales Prices, Days on Market, and Market Growth

The St. Louis housing market has remained competitive, but certain trends are shaping the landscape:

• Median Sales Price: Home prices have experienced steady growth, with the median sales price in St. Louis hovering around $171,463, Zillow has reported.
• Days on Market: The average time for a home to sell has varied, with some areas experiencing faster sales due to high demand, while others are seeing homes sit longer due to affordability concerns.
• Inventory Levels: While inventory remains lower than pre-pandemic levels, new listings have increased slightly, offering more options for buyers.
• Market Growth/Decline: While some neighborhoods are seeing rapid appreciation, others are stabilizing or even experiencing slight price corrections.

St. Louis Real Estate Market Recap: 2024

The real estate market in St. Louis in 2024 was shaped by several key factors:

• High Mortgage Rates: Rising interest rates slowed down some market activity, making it more expensive for buyers to secure financing.
• Increased Demand for Affordable Housing: More buyers sought out affordable housing options due to high borrowing costs.
• Shifts in Buyer Preferences: Many buyers prioritized homes with more space, outdoor amenities, and energy efficiency features.
• Investor Activity: While some investors scaled back purchases, cash buyers remained active in the market.

St. Louis Real Estate Market Outlook for 2025

Looking ahead, several factors are expected to influence the market:

• Interest Rates: The Federal Reserve’s policies will continue to impact mortgage rates, determining affordability for many buyers.
• Home Price Trends: While prices are expected to remain stable, certain areas may experience fluctuations based on demand and economic conditions.
• Housing Supply: New construction projects may help alleviate some inventory challenges, but supply constraints could persist.
• Economic Conditions: Employment rates, inflation, and other economic indicators will play a role in buyer confidence and purchasing power.

Interest Rates and Home Buying in 2025

Interest rates have been a major factor in housing affordability. As we move into 2025:

• If rates decrease, more buyers may enter the market, increasing competition.
• If rates remain high, affordability will be a concern, leading to more buyers seeking alternative financing options or delaying purchases.
• Cash buyers, such as those working with Cash Offer Man, will continue to have an advantage in a high-rate environment.

Selling a Home in 2025: Choosing the Right Method

For homeowners considering selling, it’s important to explore the different selling methods and what works best for your situation.

Hiring a Realtor

A real estate agent can help market your property, attract buyers, and negotiate deals. While this method can lead to a higher sale price, it also comes with:

• Realtor commissions (typically 5-6%)
• Longer selling timelines (several months in some cases)
• Home preparation and staging requirements

Selling to a Cash Buyer

Cash buyers like Cash Offer Man provide a fast and hassle-free selling experience. Benefits include:

• No need for repairs or home staging
• No realtor fees or commissions
• Closing in as little as a few days
• Selling a rental property
• Selling as-is, even with tenant or legal complications

For Sale By Owner (FSBO)

Some homeowners choose to sell their property on their own to avoid paying commissions. While FSBO can save money, it requires:

• Handling all marketing, negotiations, and legal paperwork
• Scheduling showings and open houses
• Ensuring a smooth closing process

Buying a Home in 2025

For buyers in St. Louis, 2025 will present both opportunities and challenges:

• Increased Competition: If interest rates drop, expect more buyers to enter the market. Lower interest rates will let more people afford homes as their monthly payments will be less. People who currently have lower interest rates on mortgages will also be open to moving to a new house.
• More Inventory: A slight increase in housing inventory could provide more options. Local, State, and Federal Governments have continued to cut regulations and make building more houses more efficient and cost effective leading to increase home inventory.
• Cash Offers: Buyers who can pay cash have more benefits as they can cut out inspections, appraisals and financing contingencies.

Where Is the St. Louis Market Headed?

“St. Louis is in Zillow’s top 10 of predicted ‘hottest housing market’ in 2025” Fox 2 News has reported.

Moving After Selling: DIY vs. Hiring a Moving Company

Once you sell your home, the next step is moving. Deciding whether to handle the move yourself or hire professionals depends on several factors.

Moving Yourself

Moving without a professional moving company can save money but requires more effort. Consider:

• Renting a truck or trailer
• Packing and loading all belongings
• Coordinating with friends and family for assistance

Hiring a Moving Company

Professional movers can simplify the moving process by handling logistics, packing, and transportation. Benefits include:

• Reduced physical strain and stress
• Faster and more efficient moving process
• Insurance coverage for damaged items

The choice depends on your budget, timeline, and personal preference.

When Is the Best Time to Move?

The best time to move depends on individual circumstances, but here are some general trends:

• Spring and Summer: The most active months for home sales, with more listings and competition.
• Fall and Winter: A slower market can mean better deals for buyers.
• Selling Quickly: If you need to sell fast, working with a company like Cash Offer Man can help you close on your timeline. We close in less than 15 days all the time.

Our Recommendation

Know that you have a good understanding of the current market and what factors can change the Real Estate Market as we go through 2025, we recommend people look over their personal needs and plan it with when works best for you. If you need to move near the end of the year around the Holidays, that will be just fine with the right preparation, we would would recommend that you plan ahead and know that it is a busy time of year and a slower time of year for real estate. If you are currently thinking about buying or selling a house, we would recommend you start planning what you want to do as we head into the traditional hottest time of the year for the real estate market Spring and early Summer. No matter when you buy and sell, there is always people needing to move which means there will be buyers and sellers throughout the year.

If you are interested in selling this year, fill out the form below and we will give you a FREE Market Analysis on your home and tell you exactly what your house is worth. We will also let you know what we can buy your house for, We Buy Houses in St. Louis and throughout Missouri in Columbia, Jefferson City, Warrenton, Arnold, Jennings, Hazelwood, Troy, St. Charles, O’Fallon just to name a few.